Citi Global Perspectives & Solutions, a division within Citibank, has published a report looking at the economic costs and benefits of a low-carbon future.
The report considered two scenarios: “Inaction,” which involves continuing on a business-as-usual path and action scenario which involves transitioning to a low-carbon energy mix.
One of findings in the report is that the investment costs for the two scenarios are almost identical.
In fact, because of savings due to reduced fuel costs and increased energy efficiency, the action scenario is actually cheaper than the inaction scenario.
It reports the breakdown of the investment costs in the Action ($190.2 trillion) and Inaction ($192 trillion) scenarios.
This conclusion rejects the main argument against climate action – that it’s too expensive, with some contrarians even having gone so far as to claim that cutting carbon pollution will create economic damage.
To the contrary, the Citi report finds that these investments will save money, before even accounting for the savings from avoiding climate damage costs.